tv Trending Business Bloomberg October 13, 2015 10:00pm-11:01pm EDT
on the up. jamie dimon says it is a challenging environment. further ahtag without day of holiday in jakarta. the rest of the region doing one thing. >> that is headed it down. we are looking at a second rate of decline. this is where we are at the moment. a second day of 1% declines. toward session lows. asia, extending the loss across global markets. good example, gold.
on the way up. 0.7% up. year treasury yields up. the japanese yen, dollar yen down for the third straight day. dollar yen, roughly speaking, 119. this is what is happening across major industries. checked, about 10 stocks. the rest on the nikkei down. let's have a look at what is happening australia. 0.5%. singapore come about only -- singapore, the economy managing to avoid a technical recession. the bank seen policy for the
second time to read chinese markets, the big story for the day. down.ai composite down nearly 240 points. within the china space, the inflation space. it is going to be a big market story people will be focused on. since august 13 -- there we go. that, gold, i mentioned. it was on the way up until this morning. we see the adjustment up. gold trading at its highest level since july. in a world with little or no inflation. rishaad: lingering deflation
risks. inflationthe -- extended. 1.6% on year. that was a low estimates and softer than what we saw in august. producer prices fell 5.9%. staying in line with estimates. extending the deflation streak. in six years. on food prices, a little more subdued than we saw in august. the outlook still not good with a rising cpi. a big problem for the pboc.
overcapacity, a commodities downturn. sluggish global demand. that has weighed on prices in and out of factories. that has pushed up the cost for the industrial s ector. oc may have more room to cut. and economists do not see signs of stabilization on the factory floor yet. rishaad: a more detailed look at that story later on. we do want your opinion. you can use my handle. there is a trading hold. the bank announcing they are going to be raising interest rates on some home loans. lett's see what is going on. paul allen, major implementation
-- implications from westpac. poll: westpac has given us plenty to talk about. let's talk about the capital raising first. 3.5 billion dollars local money. they will do it by issuing shares, $25.50 each. be offered to the market shortly. that will add 100 basis points to the tier one capital ratios. bank to moveatest stronger struck -- capital requirements. the other thing they are doing is raising interest rates on owner occupier home loans. this will take effect in november. it will also pleased the regulator, which is encouraging banks to limit lending to
investors. thehould send a chill down spine of anyone who has invested in property recently. it will not be long until we see the other banks following suit. cold water onme the property market. that will give the rba some impetus to move. rishaad: let's have a look at some of the other stories we are following. further moves in the drinks business. shery: they plan to buy wine brands for $609.
-- $600 million. the acquisition will transform them into a larger player of scale. the company is offering shareholders a chance to buy two new shares for every 15 may own at a 15% discount. treasury says they expect operating profits through june of next year to come in as much as $2099. earningsr sales and accelerated after the fiscal first quarter. and we will be getting a clearer picture of how the u.s. financial sector shaking out. saw a 6% fallthey in revenue the last quarter, driven by a slump in trading. profits missed estimates despite a job. -- jump. earnings.k weighed on
jamie dimon is said he is with results. pressure still high in wall street to cut expenses as diverte interest rates profits. the bank has cut jobs by 10,000 this year. other big banks releasing earnings including bank of fargo, andlls citigroup. goldman will take an interesting planning to tweet with a link to a press release. cut dorsey says he plans to 300 jobs as part of a restructuring effort. most of the jobs will be in the product and and you nearing departments and will not include executives. he returned as ceo last week. he said the move is aimed at
releasing twitter products more swiftly. culture ofeated a indecision and made it harder for the company to move quickly. he has also pledged to make twitter more accessible. users treasure the format but others find it kind of confusing. it will cost between $5 million and 15 nine dollars with the expenses coming mostly in the fourth quarter. back to you. rishaad: another story we are following, why warren buffett is skipg companies should paying wall street for advice. has clinchedrewer a deal to take over its biggest rival. but there is an interesting
0.1 percent growth. equity markets are reacting to the data out of china. the threat of deflation still lingering. the managing director, thank you for coming in. what was your first reaction to this? it is 0.2% below expectations, the consensus. china has been having a low inflation. think this is going to be changed in the near term or medium-term. what does it mean for policy? we don't see any particular risk for agriculture commodities. 30% is food and
beverages. pork prices, particularly would make it higher but that effect has waned. overalles impact the trend. low inflation. rishaad: we cut the producer price number, five .9% decline. months, negative. >> that is why i have been bearish on the future, the near term trend of the consumer sector. as we argued in our latest report. three things in our mind. deflation andous low gdp growth. we don't see the near-term possibility of spending, consumer aggressive spending. consumerdo we see
staples or discretionary? >> we see both. staples and discretionary, retail sales have been week. that is one thing. the second, the future demographics. that does not look positive. in 20 years. rishaad: china is in a race to get rich before it gets old. that is the adage. if you are not that keen on the consumer, where are you keen? consumer is a broad sector. consumption for the past three decades. a huge change. people spending out of their net income. it has been declining dramatically. 40% in rural area. that means the growth of the
food and beverage, staples, can only lead -- without hyperinflation. aboutd: are you talking the percentage of the income? they have been spending the same but a smaller part of the pie. >> that is one angle. and beverage, suddenly declining. transportation, communication, that kind of spending has been going up. this applies to both urban and rural. lifestyle has been changing. as a result of the broad consumer sector, your positive on those kinds of communication, discretionary spending. tell me something here. equity markets, very well at all. -- volatile. teour view, in the medium
rm, -- in the short term, we are concerned. spending patterns, i don't see a very clear signal of things turning around in the medium-term unless there is a demographic policy but we don't see that. rishaad: is very distinct approach when you look at the chinese consumer as opposed to others? other countries, perhaps. >> if we look at 20 years ago in japan, when the population started to beat aging and spending patterns changed. in terms of the long run, we do see china heading in that direction. low growth. what about stimulus?
things being more liquid. lending more money. reading interest rates down. how does the chinese consumer react to that? >> that it will be helpful in terms of spending. we have also done correlation research for different variables. consumption growth. even people's expectations and satisfaction indices, it is very in thoseo correlation variables. rishaad: thank you very much. the latest on consumers and more. checking some stories making headlines. the official report into says theairlines 17 plane was brought down by a russian-made missile fired from eastern ukraine. the report did not say whether was launched by pro-moscow
separatists or ukrainian forces. for also criticized kiev not closing the airspace over what was a war zone. 190 dutch people died on that plane. prime minister says he is acting now because the statute of limitations is set to expire. her critics say the wasted scheme billions of dollars. withdraw -- tokyo criticized the decision as biased. china and japan differ in how many people died in the 1937 massacre, although some
i am rishaad looking at what is trending out there. donald trump of making headlines and playfully, too. participatingely in the democratic debate through his live tweets. although he expected the two hours to be boring, he was going to help everyone out with life tweets. most ofeen retweeting the times. we saw some of his tweets. let's see what he has been saying, just an hour ago, he said who is winning? he answered himself.
they are all very scripted. two should not be there. he is read tweeting a lot. etweeting a lot. saying, web, the former virginia b, is trying tobb become be donald trump that not a working. trump has directed a lot of criticism on hillary clinton. especially the fact that she is backing away from the transpacific partnership. an interesting debate going on. television as well as social media. an interesting story. playboy is not going to be having its news spreads anymore.
march 26 will be the turnover. ellen degeneres said she will be the new cover girl. gave iconic images that playboy it's famous name, marilyn munro, it is going to end. safe for work. you will be able to watch it at work. quite a lot of reaction on social media. slate magazine, one of them saying, we can -- you can legitimately say you are reading play boy for the articles. this the fourth sign of the apocalypse? barry huffington tweeting, the world feels a little different.
the end of an era. interestingis an development. we will be able to read articles off of their website without hearing anything -- fearing anything. that is it for social media. back to you. rishaad: let's talk movies. saying the warner bros. retelling of "peter pan" could mean the loss of more than $100 million. it managed to pull in only $15 million at the box office. ♪
the pace of appreciation in the currency. 0.1% in those three months. economists had expected a contraction. jpmorgan reporting a fall in revenue. a 22% jump, 6.8 billion dollars. jamie dimon says he is pleased. we have david a look at some of the key movers. let's start with a look at some of the bright spots. and then work down to the more depressing part. the movers in australia, domino's pizza enterprises, up 5.5%.
credit suisse, they are cutting the price targets. they are struggling to meet guidance. producer prices. industrial he or. we will get to more in a moment. producer prices have been falling for a number of years. this is a reflection of declining industrial profit. dollar pressure. what they can charge. months, down.ht by the way. i will leave it there. rishaad: picking up on those numbers with the lingering deflation risk, sounding more
alarms. forcing the pboc to act in the future. a record stretch of declines. chief asia economics correspondent, here right now. what does the data tell you? that the chinese economy remains in a week state. they are struggling to gain traction. run.ecord an economy struggling, not going anywhere fast. rishaad: we had the conference, the real economic growth for china is 4% rather than seven. even 4% is pretty good. i guess you still get people ppi, which is important. 4%, on a muchis
bigger basis than the economy would be a a few years ago when it was growing at double digits. everything is relative. it is struggling to reach the 7% target. ine sectors are already recession. the manufacturing sector maybe in recession. is in inventory. rishaad: falling commodity prices playing a part. we didn't have weak commodity prices 40 months ago and we saw tpi negative. >> chinese manufacturers are in a bit of a rush. what does it mean, the regulator, the people's bank of china do about it? >> they are throwing the kitchen at it. policymakers, taking steps to
promote first time lending and even car sales. interest rate cuts. all the rest of it. taken together, economist say we will see more policy efforts before the year is over. as we head into the year and, policymakers will hope they get traction. china making headlines with inflation numbers. singapore, key data. the eased monetary policy for the second time this year. the economy avoided a technical recession. we saw the singapore dollar, up slightly against the counterpart. why? some people might see this as being a token move. credit suisse saying the rate of appreciation has only reduced
0.5%. some investors were anticipating a larger move today. there could be a little bit of disappointment. but it is not a big cut in the policy. is this the start of more easing by the monetary authority? bank is unusual. it only meets twice a year, unlike some that meet more often. they do not meet again until april, next year which gives assessenty of time to what is going on in the economy. the cpi data, a bit worrying on that front. there is plenty that could happen in the next six months. the meetings are so far apart.
rishaad: any read for monetary policy in that part of the world? what is true of singapore is often true of southeast asia. things cut rates. india, thailand, korea. taiwan. concerns about growth. any statement today, the monetary authority did say they are looking for growth in the 2-2 .5% range. they are clearly worried about developments. and asia would be worried as well. for that.hank you joining us from singapore. let's check other stories. the zeeland to dollar, falling by the most in three weeks. putting on more easing from the central bank. the governor saying, cuts seem likely even if recent data is
not been encouraging. the high court ruling rio tinto must pay royalties. the decision is covered by a in which they are a health care company may be the latest to tap interest in the booming markets in asia. ipo thatplanning an could raise as much as $300 million. talks are said to be at an early stage. first ipo since the first -- the early interest
eqarlythey could raise n $10 billion. if they go to the high-end, the value could jump to $12 billion and would make it the biggest privatization in 28 years. we are talking about valuations. the multibillion-dollar mega brewing deal which could create a company that owns or produces one of every three beers sold worldwide. that may be too much for the chinese regular's to accept. -- regulators to accept. numbers are staggering. china snow is the biggest selling beer in the world. share ofput the market
china snow with the other assets, they are going to have 23% of theery, market. saying, they are not going to let this happen. putting out antitrust issues. be a review. keeping just point and out big concerns. the beer market is tipped to increase by 50%. snow started to outsell bud light in 2008. it is the world's best-selling brand. this is a can to giving up the biggest piece of the pie if they give up this asset. outside of china, how
does it play out? was south african louis. -- brewery. they are going to get the biggest share in south africa which is the biggest market. 38% share in south america. they could get a 12% piece of the high in africa. we are seeing an increase in sales in craft beers. lager, owned by the brand. 65 million africans are expected to reach the legal drinking age by 2023. a.b. wants to get into the market. this is going to see them reap about half of the world's beer profits. they will be producing one in
every three beers sold worldwide. million they sell 61 hectoliters of the stuff. china snow. this is probably a better analogy, saying they produce enough beer each day to fill 12 olympic swimming pools. ent me a text from a story is saying he was to go for a swim in that pool. finance the chief coming up intel, next. ♪
headlines around the world. violent between israelis and palestinians. killed andlis were others wounded. the attackers were palestinians from east jerusalem. two were shot dead. concerns thatver israel wants to change worship at temple mount. israel denies the charges. leftl oil ships have arctic waters in alaska after failing to find as much as hoped. the company said they received further exploration after spending up words of $7 billion. gas,did discover oil and but not enough to justify the huge expense of drilling. airlines is going to
reclaim the title of longest flight with nonstop service to new york. the nonstop journey will surpass a planned emirates flight from dubai to panama city. they will use a long-range version of the airbus. currently, the longest is from sydney to dallas. intel says demand from data center chips from amazon, google, and others is likely to slow. they are forecasting $14 billion in revenue. in line with estimates. officer saidance they are performing better than expected. >> what we saw i think is a solid quarter.
slightly beat expectations. underneath that, what we saw was continued strong growth in the data center. offset some of the weakness you were talking about any pc segment. it came in a little better than we thought. you are seeing units down. the quarter was a little better than we thought. >> you saw better pricing but lower value. -- would think it would be >> we are doing a lot of innovation leading to high and pcs being sold. saw apple making an announcement, they are taking
advantage of technology and that is giving us an uplift. macbook is an amazing machine. working on an intel chip. data center, let's talk about that. a 6% increase. also in volume. where are you seeing that? >> 12% revenue growth. the first half was closer to 15%. generally, we are seeing a strong cloud the market. that is the secular growth driver for us. it is being offset by weakness in the enterprise segment. that correlates with overall economic growth, worldwide
economic growth career that is little weaker than we thought. to your question about unit, that is consistent with what we have seen in the data center. richard in the stack, richer configurations. center, less cooling for them. more computing power. corey: the gross margin, got better last quarter. and yet the guidance for next quarter is for a degradation. a broadere to have view of gross margins. between 15range is and 16%. as we have done more innovation, focused on efficiency, we see
margins between 55%-60 5%. we are at the high end of that range. we will see a tick down. manufacturer more of our new product. that is more expensive than the previous generation. it is pretty normal. cory: the internet of things is interesting. i tried to describe this to the producer without being heidi about it. what is the long-term impact of that business and on gross margins? it is one of the most exciting spaces for us. we are seeing more and more becoming intelligent and
connected. we play at the high end of those devices. for our business, it is growing fast. different than a lot of businesses in this space, it is very profitable. and more devices that didn't used to be connected are. those are more opportunities for us to sell our products. rishaad: up next, taking on more staffers as they report a jump in profits. we will be headed to mumbai for the details. ♪
rishaad: revenue for asia's biggest a software provider jumped 14%. news that they are hiring more staff. let's kick things off with the result. the fine look at nt, has it been a great quarter for tcs. revenue growth has disappointed analysts for a fourth straight quarter. the street a little divided and quarter on the second dollar growth. has grown at 3%. in seven years. more pressure in the third quarter, a weak quarter.
a for the second quarter. management speaking with us right now. they are saying the second half of the year is not going to look at that her. that is commentary we picked up across the board. we did talk about increasing the hiring. headline is the second half of the year is not going to look good. out,eak dollar, painting has led some brokerages to downgrade the stock. i has downgraded the stock to a cell. i want to talk about the what is happening in the rest of the ip industry. we saw numbers, there is a weakness not just in tcs. poor performance in the second